ISLAMABAD: The government has decided to allot one acre of land to Asian Development Bank (ADB) for construction of its office building in the Red Zone of Islamabad, official sources told Business Recorder.
The ADB is one of the largest development partners of Pakistan. Pakistan is a founding member of ADB with 2.714 per cent shareholding and overall capital subscription of $ 3.22 billion. ADB provides financial support to Pakistan including program lending, project loans, grants and technical assistance for bridging the financing gap and meeting the development needs of the country.
Since 1966, the Bank has disbursed above $ 25 billon, for priority areas including economic reforms, energy , road and transport, agriculture and water and social sector.
Under the new Country Operations Business Plan (COBP), ADB will provide $ 7.1 billion financial support during three years (2020-22) to enhance social protection, boost economic growth and promote sustainable development. In order to strengthen its operations in Pakistan, the Bank requires additional human resources and office space in Islamabad. ADB, accordingly, requested for allotment of land for construction of its office building in the Red Zone of Islamabad. At present, ADB's office is located in the Serena Business Complex on rental basis.
On the request of ADB, the Capital Development Authority (CDA) has offered one acre land located in sector G-5/1, Islamabad for construction of ADB's office building on standard terms and conditions which include Rs 31,041 per sq yard at a total cost of Rs 150,238,440 along with annual ground rent @ Rs 06 per sq yard. The ADB has accepted the CDA's offer for allotment of land.
A summary for approval of the Prime Minister was submitted for allotment of land to ADB which was approved by the Prime Minister's Office for onward submission to the Cabinet. The proposal has also been endorsed by the Ministry of Interior and Ministry of Foreign Affairs.
On submission of the summary, the Cabinet Division, however, advised to obtain the approval of CDA's Board before submission of the summary to the Cabinet. The CDA has clarified that fresh approval of its board is not required as its board meeting on February 2,2006 had approved allotment of 2.16 acres to ADB which was subsequently reduced to one acre. The approval of CDA's Board stands in this case.